One of the fastest growing tech companies in the San Francisco Bay Area, Virool is on its way to carving a name for itself amongst some of the more influential startups by offering a platform that makes the most of video advertising.
Founders Alexander Debelov and Vladimir Gurgov, two serial entrepreneurs, wanted to provide a portal from which videos could get noticed, easily and economically. Their platform will take videos and distribute them across a far-reaching network of mobile games, blogs, and most importantly, Facebook apps. Clients are only charged when videos are viewed for 30 seconds or more.
It costs as little as $10 to run a video campaign which reaches 750,000 sets of eyes on a daily basis, and more than 22 million per month.
Other video marketing services can start much higher with prices ranging from $75,000 to $100,000.
A Y Combinator startup, Virool has managed to set a record in funds raised during seed round, hitting $6.62 million. Investors include Menlo Ventures, Thomvest Ventures, Draper Fisher Jurvetson, the #DominateFund, FundersClub, and more.
Money raised is still touted as seed funding, but the amount says much more than that. Virool plans to use these funds to fuel the massive growth and demand it has experienced since inception. In just an eight month span, they now service over 30,000 clients.
Major clients include corporate giants like Intel, Sony, Pepsi, T-Mobile, and Volvo. Platforms that Virool takes advantage of include Facebook, Twitter, LinkedIn, YouTube, and Google+, so it is has the exposure it needs to get videos played.
Virool founder Debelov says that the plan was for the startup to continue targeting larger clients, but now sees value in attracting more mid-size and smaller clients as well. With a tiered pricing structure, it opens up possibilities for anyone to advertise by video and gain extensive exposure. Clients pay a minimum starting fee, and then pay as videos are viewed.
"Our thesis back then was if you look at all the numbers, brands have the money," Debelov said. "But if you take a step back, and look at what's being produced on YouTube, most of the video content is not being produced by brands, and a lot of the content is good and a lot of the creators have the budget to promote it."
Debelov notes that new marketing signups are at a rate of 45 per day and the site is seeing about 80 to 90 campaigns being run on a daily basis.
The company is just nine in number, and Debelov says he is now looking to expand and buildup, mostly on the sales side. They are looking for top talent and will spare no expense to fund it. Current talent comes from all spaces around the country, and include some well-knowns such as Google and Groupon.
Virool is certainly a startup that itself has gone viral; and consumers, as well as businesses, have their eyes focused on where it goes next.